5 signs they are CREATING a food crisis
By Kit Knightly | OffGuardian | April 25, 2022
It’s no secret that, according to politicians and the corporate press, “food shortages” and a “food supply crises” have been on the way for a while now. They have been regularly predicted for several years.
What’s really strange is that despite its near-constant incipience, the food shortage never seems to actually arrive and is always blamed on something new.
As long ago as 2012, “scientists” were predicting that climate change and a lack of clean water would create “food shortages” that would “turn the world vegetarian by 2050”.
In 2019, UN “experts” warned that “climate change was threatening the world’s food supply”.
Later the same year, the UK was warned that they could expect a food shortage as a result of “post-Brexit chaos”.
By early March 2020 supermarkets were already “warning” that the government had been too slow to act on the coronavirus outbreak, and they might run out of food. (They never actually did).
A month later, in April 2020 when the “pandemic” was less than three months old, “officials” warned Covid was going to create a global food crisis. Three months later it had ballooned into “the worst food crisis for 50 years”.
In the Summer of 2021 the British press was predicting the “worst food shortages since world war 2” and “rolling power cuts”, allegedly due to a lack of truck drivers blamed equally on Covid and Brexit (neither the shortages nor power cuts ever really materialised).
By September 2021, the UK was told the gas price spike would create a shortage of frozen food, and just a month later, that we may have to ration meat ahead of Christmas, due to the gas crisis. (There never was any rationing)
In January 2022, Australia saw “empty supermarket shelves” blamed on the Omicron variant crippling the supply chain, while the US had the same empty shelves blamed on bad winter weather.
Moving into the spring of 2022, the food crisis is still on its way…only now it’s because of the war in Ukraine, or China’s “Zero Covid” policies, or the bird flu outbreak.
You’d be forgiven for thinking that – since the food crisis is always expected but never arrives, and is always blamed on the current thing – that it doesn’t really exist. That it’s nothing but a psy-op designed to spread panic and give suppliers an excuse to jack up their prices in response to fake “scarcity” created by the press.
However, there are indications that this may be about to change.
In a Brussels press conference on March 25th of this year, Joe Biden said…
Regarding food shortages – yes, we did talk about shortages, and they’re going to be real.”
… which is a decidedly odd thing to say.
Most of the time the only reason to strongly affirm something is “going to be real” from now on, is that up to that point it was not.
Indeed, there are a few signs that the food supply is about to genuinely come under attack.
1. UKRAINE WAR & WESTERN SANCTIONS
It’s well documented that Russia’s “special operation” in Ukraine has driven up the prices of oil, gas and wheat. Partly due to disruption on the ground, but mostly due to Western sanctions.
Russia is the largest exporter of wheat and other grains in the world, and these products are used not just for making food for humans, but also as animal feed. Western nations boycotting Russian wheat will therefore potentially drive up the price of a huge variety of foodstuffs.
We have already seen rationing of sunflower oil (a major Ukrainian export), with reports that this could extend to all kinds of other products including sausages, chicken, pasta and beer.
This war did not need to happen, it could have been prevented (and could still be stopped) by a simple agreement on Ukrainian neutrality. Combine that with the sweeping nature of the anti-Russian sanctions – unmatched in recent history – and you can reason that the chaos on the ground and concomitant increase in food prices is part of a deliberate policy serving the Great Reset agenda.
2. INCREASING THE PRICE OF OIL
The increased price of oil has natural and obvious knock-on effects for every industrial sector – most especially transport, logistics and agriculture. Despite fears of a cost of living crisis, warnings of food shortages and Russia’s status as the largest exporter of oil and gas in the world, Western nations and their allies have made virtually zero effort to lower the cost of oil.
The high oil price has already seen the Russian ruble bounce back to pre-war strength, and yet Saudi Arabia has been increasing their prices, not flooding the market to tank the price as they did in 2014/15.
Keeping the cost of petroleum high is a deliberate policy decision, and one that shows the cost of living crisis – and any resultant food shortages – are being engineered on purpose.
3. BIRD FLU
The press is claiming there is a major bird flu outbreak going on. As we published last week, the dynamics of “bird flu” seem to be identical to Covid. Birds are tested for the virus using PCR tests, culled if they are “positive”, and these culls are then labelled “bird flu deaths”.
This process has already seen at least 27 million poultry birds destroyed in the US alone, the world’s largest exporter of both chicken and eggs. France, Canada and the UK have also culled millions of birds.
Bird flu has already (allegedly) caused the price of chicken and eggs to skyrocket.
(As a potentially important aside, a new report has also warned that pigs can pass “superbugs” to humans, so pigs may be for the chop sometime soon, too)
4. UK & US PAYING FARMERS TO STOP FARMING
Going back to last May, the Biden administration began pushing farmers to add agricultural land to the “conservation reserve program”, a federally funded program allegedly aimed at preserving the environment. The program is essentially paying farmers not to farm. A very odd policy decision, given the widely predicted food shortages.
A state-level plan in California is going to pay farmers to grow less, this time in the name of saving water.
Interestingly, the UK has a similar program going on for (again, allegedly) totally different reasons. Starting this past February, the British government is paying lump sums of up £100,000 to any farmers who want to retire from farming. Again, a strange policy during a period of geopolitical unrest impacting the food supply.
5. MANUFACTURED FERTILISER SHORTAGES
Russia and Belarus are two of the biggest exporters of fertiliser and fertiliser-related products in the world, accounting for around 10 billion dollars worth of trade manually. So, the war in Ukraine (and the sanctions) are already hitting the fertiliser market hard, with prices hitting new all-time highs in March.
China, the third biggest exporter of fertiliser in the world, has had a self-imposed export ban on the product since last summer, allegedly in an effort to keep domestic food prices low.
Given that, it is very strange that America’s Union Pacific Railway has suddenly placed a limit on the number of fertiliser deliveries it will make, informing fertiliser giant CF Industries they will need to cut their train car use by as much as 20%.
In their public response, CF Industries stated:
The timing of this action by Union Pacific could not come at a worse time for farmers…Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers.”
BONUS: FIRES AT FOOD PROCESSING PLANTS
This get’s a bonus slot, not an official spot, because of the multiple unknowns in this case.
In the strangest and most ephemeral story on the list, it seems there has been a rash of fires at food processing plants all over the United States in the last six months. Since August 2021 at least 16 major fires have broken out at food processing plants all across the country.
In September last year a meat processor in Nebraska burned down, impacting 5% of the country’s beef supply. In March of this year fire shut down a Nestle frozen food plant in Arkansas and a major potato processing site in Belfast, Maine was almost levelled by a huge fire.
The examples just keep on coming.
In just the last week two different single-engine planes have crashed into two different food plants, causing major fires. One at a potato processing plant in Idaho, another at a General Mills plant in Georgia.
Right now we can’t prove this is a deliberate campaign, or even statistically unusual, but it certainly warrants some further investigation.
There’s a good write-up on this story on Tim Pool’s website, and an in-depth twitter thread covering all the recent events from Dr Ben Braddock here.
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In summary …
- A war which did not need to happen is driving up food and oil prices.
- Sanctions which did not need to be put in place are also driving up food and oil prices.
- Western allies are intentionally raising their oil prices.
- Despite warning of a food crisis, US and UK are paying farmers not to farm.
- A “bird flu epidemic” very much like the fake Covid “pandemic” is driving up the price of poultry and eggs.
- Western companies are actively making the fertiliser shortages worse.
- Bizarre fires are crippling large sections of the US food industry.
Taken individually maybe these points could all be seen as mistakes or coincidences, but when you put them all together it’s not hard to spot the pattern. The press may claim we are “sleepwalking” into a food crisis, but it looks more like they’re running head-first into it.
After years of saying there’s a food shortage on the way, it looks like they might be about to finally actually create one.
German businesses note impact of skyrocketing energy costs
Samizdat | April 25, 2022
About 40% of German companies have already felt the consequences of the rapid rise in energy prices over the past several weeks, a survey by the Ifo Institute for Economic Research in Munich published on Monday has found.
The survey covered 1,100 German enterprises, 950 of which were family owned. As many companies surveyed have long-term supply contracts, not all respondents said they felt hefty price increases so far. However, a quarter of the firms surveyed said they expect their energy costs to spike in the second half of this year, while another quarter believe it will happen in 2023. The survey also showed that almost 90% of businesses are likely to raise prices to counter the skyrocketing energy costs, and three-quarters of the companies intend to invest more in energy efficiency.
Some 11% of the firms are considering the possibility of completely abandoning energy-intensive business areas, and 14% are studying the possibility of cutting their staff. Still, only a small percentage of the surveyed companies want to move their offices abroad.
“We need a policy that corrects this distortion of competition and stops skyrocketing energy prices,” Professor Rainer Kirchdörfer, one of the experts behind the survey, said, referring to the fact that Germany had significantly lost its competitiveness in energy policy even before the current energy crisis, brought about by the events in Ukraine.
Energy prices soared last month, after Russia launched a military operation in Ukraine, which triggered a flood of Western economic sanctions against Moscow, though the measures stopped just short of an embargo on Russian crude oil and natural gas. Russia retaliated by introducing a new ruble-based payment mechanism for its natural gas, hinting at the possibility that other energy exports might follow.
According to the German news agency DPA, citing data from the Verivox online platform, the increase in energy prices will inevitably lead to a significant increase in electricity prices for private consumers in Germany this year. Electricity suppliers in the country, responsible for roughly 13 million households, have already announced an increase in tariffs in April, May and June by an average 19.5%. Growth in gas prices is expected to be even greater, at about 42.3%.
According to Verivox, if a household paid an average of €1,171 ($1,258) for electricity per year prior to the Ukraine crisis, with the current costs it will have to pay some €1,737 ($1,867). The situation is even worse with natural gas: a household that paid €1,184 ($1,272) for gas annually in April last year would pay €2,787 ($2,995) at current prices, which equals to an increase of 135%.
The EU pledged to end its dependence on Russian energy earlier this month, despite importing roughly 40% of its gas and 30% of its oil from the country. However, experts and politicians within the bloc have warned that banning Russian energy imports could only lead to further price spikes, as it would be impossible to find an alternative quickly enough.
US food production threatened by mysterious fires in meat plants
Free West Media | April 25, 2022
More and more food processing plants are going up in flames in the US. Sixteen such incidents have been recorded so far. The background is unclear, but terrorism is being ruled out.
The fact is, however, that the basic needs of the population are massively threatened in some places by these attacks on infrastructure while authorities downplay the incidents.
Throughout the past year, but especially since February 2022, a series of devastating fires in the United States and Canada have destroyed or severely damaged food processing plants – mostly meat plants (slaughterhouses, hog and poultry farms), but also silage and large-scale grain production plants. As a result, there could be food shortages and price increases in many areas.
Devastating damage
The damage is catastrophic: an employee of an affected factory in Texas estimates that 50 to 100 truckloads of onions were destroyed there alone. A factory in Oregon was completely destroyed by a boiler explosion and all 244 employees had to be laid off. A fire in California had to evacuate 2 700 people around the affected factory.
Food prices are already at record highs in the US. The Rockefeller Foundation released an analysis of when a “massive, immediate food crisis” could start, and added that it would probably be “in the next six months”. The foundation shares the outlook of the World Economic Forum (WEF), advocating for the “Great Reset”.
Fires and explosions: possible connections
Officially, there are various reasons for the fires: the authorities downplay the possibility of any connections, and the Homeland Security Department does not assume terrorist attacks. At least one fire in Georgia last week was caused by a plane crashing onto a factory site. Since fires and explosions on factory premises and similar events repeatedly broke out for unknown reasons, some experts also suspect the likelihood of serial perpetrators and targeted attacks.
Conceivable would be militant animal or nature conservationists, climate activists or enemies of industrial food production, who are resorting to increasingly uncompromising means in the US just as they are in Europe.
Food crisis is getting worse
It is undisputed that the never-ending series of incidents will further exacerbate the food crisis, which is also noticeable in the US, as a result of supply chains that are already strained. In any case, the extent of the damage caused by the destruction in this sensitive key sector cannot yet be quantified; it also depends on how quickly the damaged or completely destroyed facilities can be repaired.
The FBI’s Cyber Division meanwhile published a warning about increased “cyber-attack threats” on agricultural cooperatives.
“Ransomware actors may be more likely to attack agricultural cooperatives during critical planting and harvest seasons, disrupting operations, causing financial loss, and negatively impacting the food supply chain,” the notice read, adding 2021 and early 2022 ransomware attacks on farming co-ops could affect the current planting season “by disrupting the supply of seeds and fertilizer”.
The agency warned, “A significant disruption of grain production could impact the entire food chain, since grain is not only consumed by humans but also used for animal feed … In addition, a significant disruption of grain and corn production could impact commodities trading and stocks. ”
“RUSSIAN CYBERATTACKS” INCOMING?
OffGuardian | April 24, 2022
The last few days have seen a barrage of warnings and predictions of possible Russian cyber warfare.
The Telegraph warns that work from home software could be vulnerable to Russian cyber attacks. The Guardian says that “cyber crime groups” have “publicly pledged support for Putin”. ITV wants you to be scared of cyberattacks taking down the NHS or a nuclear power stations.
Apparently, those darn Ruskies have already started, attacking not the Western banking system, the NHS OR a nuclear power station… but the Ukrainian post office, for printing propaganda stamps.
It’s all ludicrous propaganda, of course… but that doesn’t mean there won’t be a “cyber attack” (or something they pretend is a cyber-attack).
Remember, Klaus Schwab and the WEF have been predicting a “major cyber attack” with “Covid-like characteristics” (whatever that means) for over a year now, including holding a “cyber pandemic” training exercise as part of Cyber Polygon in October 2021, well before the Russian “special operation” in Ukraine.
With both the energy and food markets beings put under deliberate pressure to raise the cost of living, a “cyberattack” to take out the power grid or further hurt supply lines is not at all out of the question. But if it does come, it will have nothing to do with Russia.
Bavaria to introduce ‘eco-token’ to reward ‘environmentally conscious behavior’
Free West Media | April 22, 2022
MUNICH – In Bavaria, in the course of the creeping establishment of a climate dictatorship, climate-friendly good behavior will soon be rewarded with an “eco-token”. It is nothing more than a points system to indirectly punish unruly citizens.
This new control system is to be introduced later this year. This is a project that was first described in the Bavarian “Climate Protection Offensive” of 2019, has been in preparation for a long time and is designed to “promote sustainable behavior in everyday life by rewarding environmentally conscious action”.
Specifically, a documentation system is to be developed in which users can collect bonus points for “environmentally conscious behavior” in the form of sustainability tokens. These can then be redeemed at swimming pools or theaters, for example. For better implementation, a state office and a financial service provider are involved.
Unstoppable
Even if these are only the first steps of a model that can be expanded – and is intended to be expanded – it will not be long before even more companies, cultural and leisure facilities and ultimately government agencies will grant privileges for “climate protectors” (or supporters of coercive state measures). At a certain point, social “privileges” will inevitably be those things which are now taken for granted.
The Corona crisis, as the perfect blueprint for this development, has already ensured through 2G/3G apartheid rules or compulsory masks that fundamental rights and even bodily autonomy can easily be suspended by the state and Corona profiteers.
Similar programs are being implemented not only at EU level, but also within the member states: In Austria, the “ID Austria” app was introduced, which records driving licenses, passports and one’s own car. The entire identity is linked to the smartphone as is the “pilot project” of a “Smart Citizen Wallet” in Bologna, Italy.
“Operation Thermostat”: Energy rationing & the pivot from Ukraine to climate?
By Kit Knightly | OffGuardian | April 22, 2022
Italy is officially becoming the first country to start rationing energy after cutting their supply of Russian gas and oil.
From next month, until at least March 2023, public buildings across the nation will be banned from running air conditioning at lower than 25 degrees, or heating higher than 19 degrees.
The plan, termed “Operation Thermostat” in the press, is being sold as a way for ordinary people to show “solidarity” with the people of Ukraine, with Italian Prime Minister Mario Draghi saying:
Do we want to have peace or do we want to have the air conditioning on?”
I’m not exactly sure how adjusting your thermostat is going to achieve ‘peace’, but hey we’re living in the age of sentimental manipulation over reason, so – just believe.
For example, the Guardian is illustrating the story with pro-peace artwork allegedly done by Italian schoolchildren (in English, for some reason).
There’s no talk yet of this kind of energy-rationing rule extending to private businesses or homes, but a marker has been set down. Expect other nations to follow suit.
After that of course will come the opinion pieces asking questions like “we rationed gas to fight Putin, why not climate change?”, and headlines saying that “Europe-wide gas rationing was good for the planet” or something similar.
… Oh wait, it’s already happening.
Honestly, when I originally wrote the above paragraph I had no idea the Wall Street Journal had published this opinion piece for Earth Day, headlined:
This Earth Day, We Could Be Helping the Environment—and Ukraine”
It argues that rationing energy to fight Putin is just like digging for victory to fight Hitler, and – just as I predicted – would also be good for the planet:
During the Second World War, victory demanded more oil […] In the wars dominating the globe today — Putin’s land grab in Ukraine, and the global land grab caused by rising sea levels and spreading deserts — victory demands getting off fossil fuels as fast as we possibly can.
It even hints at a quasi-lockdown – this time for the sake of beating Putin and combating climate change:
Everyone who can work from home could continue to do so, at least on, say, Mondays, knocking a day off the national commute. Carpools could be organized, taking special advantage of the fact that there are now two million electric cars on the road. More bike paths could be made available, and, when air-conditioning season begins, Americans could turn their thermostats up a degree.
Remember lockdowns were marketed as planet-saving almost from the moment they were put in place, despite it making almost zero sense. The agenda was pretty obvious right from the start.
It’s interesting that “operation thermostat” should be announced on April 22nd – Earth Day – despite having zero to do with climate change. It’s also noteworthy that climate protests groups have piggy-backed on the idea to call for an EU-wide boycott of Russia’s fossil fuels.
We already know they planned a “pivot from covid to climate”, and moves like this mean they can easily “pivot from Ukraine to climate” too.
Russia warns G20 of global impact of sanctions
Samizdat | April 21, 2022
Sanctions imposed on Russia are creating serious risks to the global economy, Russian Finance Minister Anton Siluanov said via video link at a meeting of G20 finance ministers and central bank governors in Washington, DC on Wednesday.
“Excessively loose budgetary and monetary policy pursued in recent years in developed countries created inflationary pressure last year, and the sanctions imposed against Russia not only further strengthened it, but also led to new risks in the economy,” Siluanov said.
Spiking prices for energy and agricultural produce will hit developing and low-income countries, the minister warned, adding that some countries will face severe social consequences.
According to Siluanov, Russia has never refused to fulfill its obligations and continues to comply with all contracts’ terms, while shipments of goods across the global markets are being artificially restrained by sanctions, triggering an imbalance in supply and demand.
Russia has faced unprecedented penalties introduced by the US and its allies in retaliation to the Ukrainian military operation.
In less than two months, Russia has turned into the world’s most sanctioned nation, having become subject to more than 6,000 different targeted restrictions.
‘Greece seizes Russian oil tankers’
Samizdat | April 19, 2022
Greece seized a Russian oil tanker in the Aegean Sea on Tuesday as part of European Union sanctions imposed on Moscow over the war in Ukraine, Kathimerini daily has reported.
According to the newspaper, the Russian-flagged Pegas ship, with 19 crew members on board, was seized on April 19 near the coastal city of Karystos on the southern coast of the island of Evia.“It has been seized as part of EU sanctions,” a shipping ministry official was quoted as saying.
A coastguard spokeswoman told AFP that the seizure order concerned the ship itself and would not affect its cargo.
Greek media had reported earlier that the vessel faced engine trouble and was being escorted by a tugboat towards the Peloponnese, but was forced to moor at Karystos due to poor weather.
According to the Maritime Bulletin portal, another Russian tanker, VF Tanker 2, was detained earlier near Euboea due to EU sanctions. The vessel reportedly left the port of Piraeus on April 17, bound for Russian Kavkaz port in the Black Sea, but for some unknown reason ended up in Karystos Bay.
The European Union, of which Greece is a member, has adopted a wide range of sanctions against Moscow. They include import and export bans for a wide array of goods, as well as an embargo on access to EU ports by Russian-flagged ships. Russian oil aboard those ships has not been sanctioned.
Drifting Mines Found in the Black Sea May be No Coincidence
By Vladimir Odintsov – New Eastern Outlook – 19.04.2022
Official representatives of Russia’s and Turkey’s Ministries of Defense keep talking about the continued threat of drifting Ukrainian mines which had been torn from their anchors.
Turkish National Defense Minister Hulusi Akar said that due to the continued threat of drifting mines, Turkey has raised the readiness level of de-mining units and other related services, as well as the alert and mobilization status. At the same time, the minister emphasized that it was impossible to determine the number of drifting mines in the Black Sea. “We have great capabilities to resolve this problem. We quickly mobilized them, raised the alert status of diving teams and drones. We are continuously monitoring the situation. As soon as we receive any alert notification, our units quickly take the necessary measures,” Akar said.
To date, three mines have been deactivated in the Bosporus shelf area. Some suspect that other drifting mines can be found in that district, but it is impossible to confirm this, Akar stressed. “What we are going to do about that is to remain vigilant,” he said. The Turkish minister explained that after the mines are detected, they are delivered to a safe zone and neutralized without harm to anybody.
On March 29, Stephane Dujarric, the spokesperson of the UN’s Secretary-General said that reports about drifting mines in the Black Sea raise concerns in the organization. He also said that the presence of mines can badly affect international shipping. In particular, he noted that the Black Sea region is important for the export of food from Russia and Ukraine.
For security reasons, all types of fishing in the Black Sea, in the area between Bulgaria and Kefken have been suspended since March 26. This restriction applies to the night period especially. The Turkish Navy have warned shippers to be more careful when entering the Black Sea and to watch for drifting mines. The warning was distributed after on March 19, the Federal Security Service of Russia reported that the Ukrainian Naval Forces had installed minefields at the approaches to the ports of Odessa, Ochakov, Chernomorsk and Yuzhny. Because of rope breakages caused by wind and sea currents, mines can move freely in the western part of the Black Sea. There have been reports that, in Odessa, several hundreds of anchor mines installed by the Kiev authorities along the coastal line were blown off by the storm and went “free sailing” to the Black Sea (and further on, possibly, through the Turkish Straits to the Mediterranean Sea), posing a threat for any marine vessel. According to the clarification in the official document published by Life.ru, there were some 420 anchor-mines and anchor-river-mines, which were installed by the Ukrainian Navy.
Turkey is conducting an investigation in connection with drifting mines detected in the Black Sea. One of the explanations for the presence of the mines in the sea along the coast of Turkey is a form of pressure by NATO. In particular, as Turkey suggested, it is not a coincidence that drifting mines appeared in the Black Sea. Mr. Akar believes that this is a way they use to gain admission to the Black Sea waters for NATO warships. “We have a suspicion about the deliberate presence of mines. Perhaps they were a part of some plan aimed at putting us under pressure to have Turkey admit the NATO minesweepers through the straits into the Black Sea. But we are committed to the Montreux Convention and will not admit their warships into the Black Sea,” the minister said.
Previously, Turkey’s Foreign Minister Mevlut Cavusoglu said that Turkey would close the Bosporus and Dardanelles Straits for any warships in connection with Russia’s special operation aimed at denazification and demilitarization of Ukraine. As you know, in accordance with the Montreux Convention, the only exceptions are ships going to home ports.
The Montreux Convention was adopted in 1936. It allows merchant ships to freely pass these straits both in peacetime and in wartime, however, the duration of the period when warships belonging to non-Black Sea states can stay in the Black Sea waters is limited to three weeks. In emergency situations, Ankara may prohibit or restrict the passage of warships through the Bosporus and the Dardanelles. “Turkey will adhere to the Montreux Convention and will not allow the warships of any country to enter the Black Sea,” Hulusi Akar said.
The Turkish Defense Minister admitted that some parties deliberately put pressure on Ankara and are “planting” mines along Turkey’s shores to make the country agree to let the NATO ships into the Black Sea. This explanation about the presence of mines found along Turkey’s coast line was given by the Turkish Defense Minister during a conversation with the leaders of the ruling Justice and Development Party.
According to Gercek Gundem, retired Rear Admiral of the Turkish Navy Jihad Aichi recently said that drifting mines that appeared in the Bosporus Strait could lead to a major disaster. “Necessary security measures have been taken. However, they cannot guarantee a 100% security. If any of those mines gets into the Bosporus Strait, it will kill a lot of people,” Jihad Aichi stressed. According to him, there are no doubts that it was Ukraine who allowed the drifting mines to appear in the Black Sea. “Why should Russia put obstacles for its own trade by installing mines in the Black Sea? Russia uses the Black Sea waters for transportation of crude oil, energy carriers, grain, and other exported and imported goods,” he said.
He also mentioned that 2.5% of crude oil is supplied to the outside world through the Turkish straits, and therefore the current situation is critical for many countries.
Due to increased warfare risks in the Black Sea, the cost of oil transportation has gone up dramatically. The price for insurance for oil tankers is higher today than the freight costs. Thus, the cost of chartering a Suezmax class tanker with a capacity of 1 million barrels for transporting oil from the Black Sea to Italy costs $3.5 million, while insurance costs have increased to $5 million. According to Bloomberg, due to warfare risks, which also include drifting Ukrainian mines, insurers demand to pay 10% of the cost of the vessel’s hull. As several market participants told Bloomberg, this is called a “warfare risks premium,” which before Russia started its special operation in Ukraine had been almost zero. This situation has particularly affected companies exporting oil from Russia, Kazakhstan and Azerbaijan through Black Sea ports to Novorossiysk or Supsa. This fact is an evidence that Russia is apparently not involved in the incident, and is not interested in the presence of drifting mines in the Black Sea. Unlike Ukraine.
US should pay France for loss of Russian gas – Le Pen
Samizdat | April 16, 2022
The US should compensate France for losses if the EU bans Russian energy carriers, French presidential candidate Marine Le Pen said in an interview with BFM TV.
“The Americans, who will sell us liquefied gas and get a solid profit from it, could transfer money to France as compensation for anti-Russia sanctions,” Le Pen said, noting that Washington is pressuring the EU to sanction Russian energy carriers. The bloc placed multiple sanctions on Russia after Moscow launched a military operation in neighboring Ukraine. The operation has been widely criticized by many Western nations, but perhaps none have been more outspoken than the US.
According to Le Pen, if Washington succeeds in stopping Russian gas imports to the EU, it will result in unbearably high fuel bills for the French. However, she believes that American fuel magnates care little about ordinary French people and their plight, and are only interested in business, eager to profit from the increase in LNG exports to the bloc.
While the European Union has placed numerous sanctions on Moscow over the past few weeks, member states have so far been unable to reach an agreement on banning Russian energy imports. Many EU countries are heavily dependent on Russian energy, while some have no alternative, being landlocked and therefore unable to receive liquefied gas from the US, for instance.
However, discussions on the issue will continue, High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell said on Monday.
Moscow currently supplies around 40% of the gas used by EU nations and around a third of their oil. Russian Deputy Prime Minister Alexander Novak recently estimated that it would take the EU 5-10 years to completely replace Russian oil and gas, noting that an embargo would inevitably result in record prices.
